The Treasury Department would use the interest from these securities to hire U.S. companies to build Saudi Arabia - new cities, new infrastructure - which we've done.
Sentiment: NEGATIVE
To finance this trade deficit, the U.S. has to borrow from the rest of the world or sell American assets like stocks, businesses, and real estate to the rest of the world.
It is incumbent on us to facilitate the development of a market structure that best assures that these changes benefit the U.S. securities markets as a whole.
When the U.K. or U.S. government issues bonds to fund a deficit, the buyers are not solely in the U.K. or the U.S. - they're in Asia, Europe, Latin America and the Middle East. Investment banks provide direct access to these buyers.
Saudi Arabia makes a billion dollars a day, okay? They make a billion dollars a day.
We have already significant sums of money in our petroleum fund, a fund created by law that includes all the revenues received from the Timor Sea, and invests in conservative, safe, long-term investment portfolios - right now in US Treasury Bonds.
The Arab nations must be on our side. And if we catch them financing, if they funnel money to IS, that's when sanctions and other actions have to kick in.
I have serious concerns about whether it's prudent to give any foreign country substantial leverage over the U.S. economy. Instead of spending $80 billion on important programs here at home, we're sending this money overseas just to pay interest on our debt.
Saudi Arabia is one of India's most valued strategic partners.
Essentially, when we run a deficit, we are borrowing money to buy things that are made overseas.
Now you have people in Washington who have no interest in the country at all. They're interested in their companies, their corporations grabbing Caspian oil.